Australia is launching a real-time payments solution today called New Payments Platform (NPP). As with many other faster and real time platforms around the world, this capability was created centrally, under the auspices of the government. The Aussies spent $1 billion AUD or about $800 million USD on their new payment rails.
One feature of this platform is the ability to identify an individual’s banking credentials through their mobile number, email or other identifier called PayID. A consumer registers their PayID with their bank and then will have the ability to transact without knowing checking account detail. Financial institutions and Fintech organizations will have the opportunity to build solutions on top of NPP to provide an array to services. Bpay is offering a money transfer service called Osko that uses the new payment rails and the PayID system.
Australia’s real-time payments platform goes live today, with customers of three of the country’s big four banks able to transfer funds in seconds.
The New Payments Platform (NPP) will enable customers of Commonwealth Bank, National Australia Bank and Westpac to send money via a service called PayID, which requires users to enter only the recipients’ mobile phone number or email address. Other financial institutions, including ANZ, will follow.
The billion dollar project is being run by NPP Australia, which was set up by the industry in late 2014 in response to cajoling from the country’s central bank, eager to catch up with the likes of the UK in the faster payments arena.
Overview by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group
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